Budget 2021: Demand of industrialists in discussion with Finance Minister- Disinvestment of government companies should be fast

In a pre-budget discussion with Finance Minister Nirmala Sitharaman, the delegation of the Confederation of Indian Industries (CII) has demanded that the disinvestment and monetization of government companies be done aggressively so as to increase government revenue. Apart from this, CII has also demanded to reduce the government’s stake in banks to below 50 per cent.

Confederation of Indian Industries

 that the disinvestment and monetization of government companies be done aggressively so as to increase government revenue. Apart from this, CII has also demanded to reduce the government’s stake in banks to below 50 per cent. CII said that this is necessary given the reduced tax revenue of the government.

What did CII say 

CII said that the focus of budget proposals should be on fiscal management along with GDP growth. CII President Uday Kotak said that the government will have to prioritize infrastructure, health and sustainability of the economy for its expenses. The budget should address key areas such as increasing private investment and providing support for job creation.

Urgent need for financial reform 

CII has told the Finance Minister that the government should reduce its stake in public sector banks to below 50 per cent in the next 12 months through the stock market. Only three to four big banks like State Bank of India, Bank of Baroda and Union Bank can be kept free from this disinvestment.